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Pengrowth Energy to Acquire NAL Energy for $1.9 Billion to Expand its Medium and Light Oil Business in the Western Canadian Sedimentary Basin
GlobalData, May 2012, Pages: 9
Pengrowth Energy to Acquire NAL Energy for $1.9 Billion to Expand its Medium and Light Oil Business in the Western Canadian Sedimentary Basin - Deal Analysis from GlobalData
Summary
Pengrowth Energy Corporation (Pengrowth), agreed to acquire the entire share capital of NAL Energy Corporation (formerly known as NAL Oil & Gas Trust) (NAL Energy), for a purchase consideration of CAD1,900m ($1,908.34m) or CAD8.56 ($8.6) per share, including approximately CAD600m ($602.63m) debt.
Under the terms of the agreement, NAL Energy shareholders will receive 0.86 of a Pengrowth share for each NAL Energy share (exchange ratio). The exchange ratio represents a premium of 9.7% for NAL Energy shareholders based on the closing price on March 22, 2012 (a day before the day of deal announcement). Based on the 20-day volume-weighted average prices on the Toronto Stock Exchange (TSX) of Pengrowth and NAL, the exchange ratio represents a premium of 11% for NAL shareholders. Pengrowth will also assume all of the rights and obligations of NAL Energy relating to 6.75%, 6.25% and 6.25% convertible unsecured subordinated debentures of NAL Energy maturing on August 31, 2012, December 31, 2014, and March 31, 2017, respectively. The Bank of Nova Scotia is acting as financial advisor to Pengrowth Energy and BMO Capital Markets Corp. is acting as financial advisor to NAL Energy in the transaction.
The transaction is expected to be completed on May 31, 2012, subject to approval of the NAL Energy shareholders of at least 66.06% of the NAL shares and also the approval of a majority of the votes by the Pengrowth shareholders.
Scope
- Rationale behind Pengrowth acquiring NAL Energy
- Stratigic benefits for the companies involved in the transaction
- Geography covered - Canada
Reasons to buy
- Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures undertaken by Pengrowth and reason for acquiring NAL Energy.
- Plan project locations and project types to capitalize on the growing E&P market
- Identify the most suitable region to invest in new E&P assets
Keywords
Pengrowth, NAL Energy, Medium and Light Oil, Western Canadian Sedimentary Basin
1
1
1.1 List of Tables
1.2 List of Figures
2 Pengrowth Energy to Acquire NAL Energy for $1.9 Billion
2.1 Deal Overview
2.2 Deal in Brief
2.3 Pengrowth Plans to Acquire NAL Energy to Expand its Medium and Light Oil Business in the Western Canadian Sedimentary Basin
2.4 Western Canada Sedimentary Basin is Among the Most Prolific Oil and Gas Regions in Canada
2.5 Fall in Natural Gas Prices were Affecting the Revenue of NAL Energy
2.6 Deal Financials and Valuations
3 Appendix
3.1 Methodology
3.2 Contact Us
3.3 Disclaimer
1.1 List of Tables
Table 1: Canada, Major Deals of Pengrowth, 2010 – till present
Table 2: Canada, Major Deals in Western Canada Sedimentary Basin, January 2012 – till date
Table 3: Companies Involved
Table 4: Financials of the Deal
Table 5: Advisor Information
Table 6: Target Information
Table 7: Target’s Financial Information
Table 8: Share Price Information
Table 9: Company Valuation Multiples
Table 10: Target’s Production and Reserves Information
Table 11: Company Valuation Multiples
Table 12: Commodity Prices in $, Last Close
Table 13: Acquirer Information
1.2 List of Figures
Figure 1: Location of Assets of Pengrowth and NAL Energy in the Map, 2012
Figure 2: Pengrowth, 1P and 2P Reserves after Acquisition of NAL Energy, MMboe, 2012
Figure 3: Pengrowth, Breakdown of Total 1P Reserve by Commodity, %, 2012
Figure 4: Western Canadian Sedimentary Basin, 2012
Figure 5: NAL Energy, Contribution of Various Segments to the Total Production, Percentage, 2012
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